Which of the Following Would Be Expected If the Tariff

question 155

Multiple Choice

Which of the following would be expected if the tariff on foreign-produced automobiles were increased?

• A) The domestic price of automobiles would fall.
• B) The supply of foreign automobiles to the domestic market would decline, causing auto prices to rise.
• C) The number of unemployed workers in the domestic automobile industry would rise.
• D) The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.

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